Japan's recent move is quite ruthless—starting in 2026, the tax rate on encryption assets will be directly cut to a uniform standard of 20%.

According to NHK, the ruling class is vigorously promoting this new tax system proposal, aiming to completely abolish the current progressive tax rate that can go up to 55%. After the change, your tax burden for trading cryptocurrencies will be treated the same as buying stocks or investing in funds.

This change is not trivial. Originally, making a profit in Japan could require giving up half of it, but now only one-fifth is needed. With such a reduction in tax burden costs, both retail and institutional investors will definitely be more willing to enter the market.

Don't forget that Japan itself is the third largest encryption market in the world, and this policy loosening is likely to trigger a new wave of capital inflow. It seems that the island nation really wants to make some moves in this track this time.